In a Tax-Free Acquisition,the Shareholders of the Target Firm

question 62

Multiple Choice

In a tax-free acquisition,the shareholders of the target firm:

• A)receive income that is considered to be tax-exempt.
• B)gift their shares to a tax-exempt organization and therefore have no taxable gain.
• C)are viewed as having exchanged their shares.
• D)sell their shares to a qualifying entity thereby avoiding both income and capital gains taxes.
• E)sell their shares at cost thereby avoiding the capital gains tax.

---

Definitions:

Social Communities

Groups of people who share common interests or values and interact with each other, primarily through online platforms or social networks.

Online Brand Community

A virtual community formed around a brand or product, where members share experiences, offer support, and engage in discussions related to the brand.

3M Model

A theoretical model used in marketing and psychology to explain motivations behind individuals' behaviors, often focusing on memory, motivation, and mindset.

Monitor Approach

A method focusing on continuous observation and analysis of activities or processes, often for the purpose of improvement or intervention.